1.Class Time Partners is a general partnership with the following balance sheets:

	Basis	FMV
Cash	$15,000	$15,000
Capital assets	35,000	75,000
Land	85,000	240,000
Totals	$135,000	$330,000
Recourse liabilities	$90,000	$90,000
Capital, Claire	15,000	80,000
Capital, Lorie	15,000	80,000
Capital, Tom	15,000	80,000
Totals	$135,000	$330,000

The partners share equally in profits, losses and capital. Tom is negotiating to sell one-half of his interest in the partnership to an unrelated buyer. Assume the buyer is willing to pay $50,000 cash for half Toms interest.

a.What will be the amount realized by Tom on the sale?

b.What is the tax basis of the interest to be sold by Tom?

c.How much gain will Tom recognize on the sale?

d.What will be the buyers tax basis in the newly acquired interest?